Author: Aditya Rathi & Shail Pillay
Should I Invest in Gold? Is Gold a Good Investment? Gold Vs Equity?
If you are also having any of these questions, this article will definitely clear your doubts.
To begin with, investing in gold has provided superior returns compared to equities.
In Turbulent Times, Gold has Outstandingly Outperformed Nifty
- Gold and equities form a complementary asset duo, essential for a strategic well-diversified long-term portfolio. Historically, they share an inverse relationship—when stocks decline, gold often thrives.
- Globally, as gold demand spikes when GDP growth slows. In financial crises, equities fall out of favor, while gold, a traditional safe-haven asset, provides stability. This makes it an ideal time to invest in Gold.
Why should I invest in Gold now?
- Central banks are increasing gold reserves to hedge against fiat currency risks, reinforcing gold’s role as a superior store of value.
- Additionally, we are witnessing a unidirectional equity market, making gold a compelling diversification tool. Both these reasons translate into strong returns, making today an opportune time to invest in gold.
Let’s look at how Gold has fared during periods of uncertainty
1. Global Financial Crisis (2008)
Gold’s surge during the 2008 financial crisis highlights its role as a dependable asset that provides stability and safeguards wealth during economic turmoil.